The International Monetary Fund (IMF) , in a press release, said that better domestic job opportunities would reduce poverty, thereby curtailing outward migration and the accompanying social hardships and sustained remittance inflows that can complicate macroeconomic management in the absence of compensating productivity gains.
In order to realize the rapid growth of the country, IMF “calls for further reducing bottlenecks to investment and formal sector employment that may be discouraging broad-based business activities.”
An expansion of production structure would beef up resilience to ‘economic shocks,’ which unduly impact the less privileged.
“Favorable demographics are a missed opportunity if the economy cannot effectively absorb the growing working-age population,” IMF added.
Further reforms to attract investment and create new employment would help sustain vibrant economic growth and make it more inclusive, it said.
“Relaxing limits on foreign ownership, reducing red tape, and limiting tax holidays that tend to favor incumbents and distort the tax system would increase market contestability, support execution of public-private partnerships and better position the Philippines to benefit from the growth and employment opportunities of deeper regional integration,” IMF said in a statement.
An increase in employment generation among the agriculture sector and in micro and small firms calls for “establishing clear property rights for small-scale farms, expanding access to formal credit, and reducing labor market rigidities.”
Meanwhile, IMF said that the Philippine economy has continued to perform robustly.IMT